BOJ Raises Rates to 31-Year High Amid Mixed Market Reaction

The Bank of Japan (BOJ) has raised its policy rate to a 31-year high of 1.25% in a move that has sparked mixed reactions from markets.

The decision, which was announced on September 18, 2026, saw the BOJ raise its policy rate by 25 basis points from 1.0% in June, and takes Japan's benchmark closer to levels considered neutral by the central bank.

However, despite the hike, the yen weakened past 157 to the dollar, while bond yields slipped and the Nikkei 225 rose 1.5% to close at 65,018.95.

The decision was made with a 7-2 vote, with two board members, Toichiro Asada and Ayano Sato, dissenting in favor of holding rates steady.